Foreign currency Valuation

[former_member229069]

Dear All,

I want to understand, the postings of the foreign currency valuation Below are the details:

Vendor Ledger

Date	Invoice Amount	Valuated Amount
15.09.2014	623,000	542,000-   (at the time of month end valuation)
12.03.2015	623,000	623,000    (at the time of payment)

At the time of payment entries which got posted are:

Accntnum	Description	Amount
48300	Cash control	519,000
301605	Vendor name	623,000
43001	Clearing Account AP	81000
59700	Realized Forex gain	23000

My question is:

Valuated difference is getting posted to "clearing account AP"

623000 - 542000 = 81000

Realized forex gain is getting posted as:

542000 - 519000 = 23000

Now entry of amount "81000" is open in the clearing account AP, how shall I clear this entry against which line item or posting?

Need your inputs in understanding the concept, Thanks all!

Chetan

[former_member229069]

Can somebody help me on this ?

[sheel1]

Hi Chetan

Can you please check if at the time of month end valuation whether there was a reversal posting for this vendor line item or no. Are you by any chance using delta method for revaluation.

Saurabh

[sheel1]

Hi Chetan

Do you know where account 43001 is configured?

Saurabh

[former_member229069]

Hello Saurabh,

The account 43001 is configured in "Exchange Rate Dif.: Open Items/GL Acct", Transaction "KDF".

This account is configured for the Trade creditors reconciliation account. Attach is the screen shot.

Thanks

Chetan

[former_member198650]

Hi Chetan,

Can you share screen shot of accounting document in SAP? Here system suppose to post to loss a/c not gain. The total invoice amount you have to pay 542,000, but you are paying 623000. That means here system will generate loss entry.

Regards,

Mukthar

[former_member229069]

Hello Mukthar,

I am attaching two screen shots for the issue. First from the vendor ledger and second from the document overview of the same document.

We are making a  payment of 519,000.

vendor1

document overview

Thanks